RBA Minutes: Stronger economic assessment - TDS

Analysts at TDS explain that the RBA Minutes for February reinforced what the SoMP and testimony had previously mentioned, that global activity, commodity prices, business confidence/conditions and the labour market were all stronger than the Bank expected.

Key Quotes

“On inflation, the RBA mentioned "further progress on inflation is likely to be only gradual". The RBA buzz word is now "gradual" reflecting the fact that wages and inflation are only gradually drifting higher from the lows. Last year the RBA's focus was about the exchange rate, but more recently, about wages. Hence, Dec qtr WCI later today is crucial for our view and AUD/OIS etc.”

“Also released, RBA's Bullock, the Head of Financial Stability, spoke today, and generated a single headline about 'relatively low' (actually declining) mortgage stress in Australia. The speech dedicated some time to defining what 'mortgage stress' actually is.”